RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/144 
24 January 2005  
 
(05-0185) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
QATAR 
 
Report by the Secretariat 
 
  
 
This report, prepared for the first Trade Policy Review of Qatar, has been drawn 
up by the WTO Secretariat on its own responsibility.  The Secretariat has, as 
required by the Agreement establishing  the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), sought clarification from Qa tar on its trade policies and practices. 
 
Any technical questions arising from this report may be addressed to 
Messrs. Ricardo Barba (tel:  022/739 50 88;  fax:  022/739 57 65) and 
Jacques Degbelo (tel:  022/739 55 83). 
 
Document WT/TPR/G/144 contains the policy statement submitted by Qatar. 
 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Qatar. Qatar WT/TPR/S/144 
 Page iii 
 
 
CONTENTS 
Page  
SUMMARY OBSERVATIONS vii 
 (1) T HE ECONOMIC ENVIRONMENT  vii 
 (2) I NSTITUTIONAL FRAMEWORK  vii 
 (3) T RADE POLICY INSTRUMENTS  viii 
 (4) S ECTORAL POLICIES  viii 
 (5) T RADE POLICY AND TRADING PARTNERS  ix 
I. ECONOMIC ENVIRONMENT 1 
 (1) M AJOR FEATURES OF THE ECONOMY  1 
 (2) R ECENT ECONOMIC DEVELOPMENTS  2 
 (3) T RADE PERFORMANCE AND INVESTMENT  4 
 (i) Trade in goods and services 4  (ii) Foreign direct investment 8 
(4) O
UTLOOK  9 
II. TRADE AND INVESTMENT REGIMES 11 
(1) T HE INSTITUTIONAL FRAMEWORK  11 
(2) T RADE POLICY FORMULATION AND IMPLEMENTATION  12 
(3) P OLICY OBJECTIVES  13 
(4) T RADE AGREEMENTS  14 
(i) WTO 14 (ii) Regional agreements 16 
(iii) Bilateral agreements 17 
 (iv) Other preferential arrangements  17 
 (5) I
NVESTMENT FRAMEWORK  18 
III. TRADE POLICIES AND PRACTICES BY MEASURE 20 
(1) I NTRODUCTION  20 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  21 
(i) Registration 21 
(ii) Customs procedures and valuation 21 (iii) Rules of origin 22 
(iv) Tariffs, other duties, and taxes 23 
(v) Import prohibitions, restrictions, and licensing 26 (vi) Contingency trade remedies 27 
(vii) Standards and other technical requirements 28 
(viii) Government procurement 30 (ix) Local-content requirements 31 
(x) Other measures 31 
 (3) M
EASURES DIRECTLY AFFECTING EXPORTS  31 
(i) Registration and documentation 31 
(ii) Export duties and taxes 32 (iii) Export prohibitions and restrictions 32 WT/TPR/S/144 Trade Policy Review 
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 Page  
(iv) Export subsidies and assistance 32 
 (v) Export finance, insurance, guarantees, and promotion 32 
 (vi) Other measures 32 
 (4) M EASURES AFFECTING PRODUCTION AND TRADE  32 
(i) Incentives 32 
(ii) Competition policy and price controls 33 (iii) Public enterprises and privatization 33 
(iv) Intellectual property rights 34 
IV. TRADE POLICIES BY SECTOR 38 
 (1) O
VERVIEW  38 
 (2) A GRICULTURE AND RELATED ACTIVITIES  39 
(i) Main features 39 (ii) Policy objectives and instruments 40 
 (3) M
INING AND ENERGY  41 
(i) Overview 41 (ii) Petroleum 45 
(iii) Natural gas 48 
 (iv) Electricity 49 
 (4) M
ANUFACTURING  50 
(i) Main features 50 (ii) Policy framework 52 
(iii) Selected industries 53 
(5) S
ERVICES  55 
(i) Main features 55 
(ii) Financial services 56 
(iii) Telecommunications and postal services 59 (iv) Transport 60 
(v) Tourism 63 
REFERENCES   67 
APPENDIX TABLES  69 
 
  Qatar WT/TPR/S/144 
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CHARTS 
Page 
I. ECONOMIC ENVIRONMENT 
I.1 Structure of merchandise exports and imports, 1998-02 6 
I.2 Direction of merchandise trade, 1998-02 7 
III. TRADE POLICIES AND PRACTICES BY MEASURES 
III.1 Applied MFN tariff distribution by sector (ISIC 1 definition), 2004 24 
III.2 Tariff escalation by ISIC 2-digit, 2004 25 
IV. TRADE POLICIES BY SECTORS  
IV.1 Value added in manufacturing, 2001 50 
IV.2 Exports of manufactures, 2002 51 
IV.3 Imports of manufactures, 2002 52 
IV.4 Qatar's applied tariff by  ISIC classsification, 2004 54 
TABLES 
I. ECONOMIC ENVIRONMENT  
I.1 Qatar at a glance  1 
I.2 Main economic indicators, 1998-03 3  
I.3 Balance of payments, 1999-03 8 I.4 Foreign direct investment, 1998-03 9 
II. TRADE AND INVESTMENT REGIMES  
II.1 Main trade-related laws in Qatar 13 
II.2 Qatar's selected notifications to the WTO, as of November 2004 15  
III. TRADE POLICIES AND PRACTICES BY MEASURES 
III.1 Structure of MFN tariffs in Qatar, 2004 20 
III.2 Import prohibitions and restrictions, November 2004 26 
IV. TRADE POLICIES BY SECTORS  
IV.1 Qatar's main imports and exports of agricultural products, 1998-01 40  
IV.2 Qatar's "expected" reserves of  crude and condensate, 2000-04 42 
IV.3 Contracts between QP and foreign companies 43 
IV.4 QP's activities, October 2004 43
 
IV.5 Qatar's average daily production of crude oil and field condensate, 1999-03 45  
IV.6 Crude oil production, exports, reserves, and price, 1995-03 46 
IV.7 Production and consumption of refined products, 1999-03 47  
IV.8 Qatar's reserves of associated and non-associated gas, 2000-04 48 
IV.9 Production of natural gas liquids, 1997-02 48 
IV.10 Selected telecommunication indicators, 1998-03 59 IV.11 Merchant fleet, 1999-02 61 
 WT/TPR/S/144 Trade Policy Review 
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APPENDIX TABLES 
 Page  
I. ECONOMIC ENVIRONMENT 
AI.1 Structure of exports, 1995-02 71 
AI.2 Structure of exports, including re-exports, 1995-02 72 
AI.3 Destination of exports, 1995-02 73 
AI.4 Destination of exports, including re-exports, 1995-02 74 AI.5 Structure of imports, 1995-02 75 
AI.6 Origins of imports, 1995-02 76 
IV. TRADE POLICIES BY SECTORS  AIV.1 Summary of Qatar's specifi c commitments in services 77 
 
   Qatar WT/TPR/S/144 
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SUMMARY OBSERVATIONS 
(1) THE ECONOMIC ENVIRONMENT  
1. Qatar's development strategy, together 
with high international crude oil prices since 
mid-1999, has resulted in an impressive 
economic performance in the past few years.  Its real GDP growth rate rose from an annual average of 1.3% during 1986-95 to around 9% over the period 1996-03.  Steps taken by Qatar 
towards monetary and fiscal discipline 
contributed to reducing inflation to 2.5%  in 
2003 from a peak of 8.8% in 1996.   Largely 
due to increased oil and natural gas earnings, the external current account has recorded surpluses since 1999 (estimated at 20% of 
GDP in 2003), as has the Government's 
overall fiscal balance since fiscal year 2000/01 (5.3%  of GDP  in 2003/04).  
Nevertheless, despite Qatar's diversification efforts, in 2003, oil and gas accounted for 
56.1% of its GDP, around 70% of public 
revenue, and almost 90% of total merchandise export earnings. 
2. Qatar has invested in health, 
education, and infrastructure projects with a view to ensuring intergenerational economic 
equity in the exploitation of its non-renewable 
natural wealth.  Qatar has been implementing measures to improve its business and investment climate, with the objective of further attracting foreign direct investment.  
The measures include establishment of a one-
stop window for investment procedures, and the possibility offered to foreigners by the 
2000 Investment Law to fully own companies in selected sectors (i.e. agriculture, industry, 
tourism, education, health, and natural 
resources).  However, foreign companies remain excluded from investing in certain key activities (e.g. banking, insurance, and commercial representation), and are limited to 49% in other sectors. Such restrictions 
contrast with the relatively high share of 
foreigners in Qatar's labour force (70%).  The Quality Qatarization programme aims to increase the share of qualified Qatari nationals to 50% of the total labour force in the energy and industry sectors by the end of 
2005. 
3. Qatar's external debt is still 
manageable despite its surge from 
US$9,323 million (82.5% of GDP) in 1997 to 
US$15,035 million (75% of GDP) in 2003. Pegged to the U.S. dollar, the Qatar riyal, the national currency, has remained fairly stable in real terms.  Qatar's relatively high ratio of 
merchandise trade to GDP (some 87% in 
2003) reflects the importance of trade to its economy.  In contrast with its merchandise exports, which are dominated by oil and gas, its imports are quite diversified both in terms of products and their origins. Qatar is a net 
services importer, although the services 
sector, dominated by public administration services, accounts for about 30% of GDP and employs 65% of the labour force. 
(2) I
NSTITUTIONAL FRAMEWORK  
4. The Ministry of Economy and 
Commerce (MEC) formulates, administers, and coordinates Qatar's trade policies. Depending on the nature of the issue, the MEC consults with relevant ministries and other institutions that also take part directly or 
indirectly in foreign trade policy formulation 
and/or implementation. The private sector provides inputs to trade policy formulation by communicating its views either directly to the MEC or through the Qatar Chamber of 
Commerce and Industry, Qatar's trade 
association.  The National Committee on WTO Affairs discusses and assesses WTO-related issues. 
5. Spurred by WTO provisions, Qatar 
enacted new laws, in 2002, on patents, 
copyrights and neighbouring rights, trademarks, geographical indications, and industrial designs;  laws on topography of integrated circuits and undisclosed information are being prepared.  Qatar has no 
competition legislation, nor laws and/or 
regulations on anti-dumping, subsidies and countervailing measures, and safeguards.   WT/TPR/S/144 Trade Policy Review 
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6. A contracting party to the GATT since 
7 April 1994, Qatar became an original Member of the WTO on 13 January 1996.  It grants at least MFN treatment to all its trading 
partners. Qatar has difficulties in 
implementing some of its multilateral trade commitments, and in meeting some of the notifications required by certain WTO Agreements.  It is neither a signatory nor an 
observer to any of the WTO's plurilateral 
agreements. Qatar has no t been involved in 
any dispute under the WTO Dispute Settlement Mechanism, either directly or as a third party. 
7. Qatar is a member of the Gulf 
Cooperation Council (GCC), of which the 
customs union component became effective as 
from 1 January 2003.  In the context of the GCC, negotiations for a trade agreement are continuing with the European Communities, and a possible trade agreement is also under 
discussion with China.  Qatar is also a 
member of the Greater Arab Free-Trade Area (GAFTA) in which all six States of the GCC participate.  Qatar is considering negotiating bilateral trade agreements with the United States and with Singapore. 
(3) T
RADE POLICY INSTRUMENTS  
8. Qatar has applied the GCC common 
external tariff (CET) since 1 January 2003.  The adoption of the CET by Qatar increased its simple average applied MFN tariff from 
4.2% in 2002 to 5.2% in 2004.  Ad valorem 
tariffs account for 99% of total lines, the others being alternate duties.  MFN applied tariffs average 7.1% on agricultural products (WTO definition), and 4.8% on non-
agricultural products. Using the ISIC 
(Revision 2) definition, manufacturing, and mining and quarrying are granted almost the same average tariff protection (5.3% and 5%, respectively).   
9. All of Qatar's tariff lines are bound, 
generally at ceiling rates.  The average bound 
tariff is 16%, leaving Qatar margins for applied tariff increases. Furthermore, the imposition of non-ad valorem tariffs (1% of total tariff lines) may not ensure compliance by Qatar with its binding commitments made 
at ad valorem rates. In addition, the applied MFN rate is 5% on 32 tariff lines at the HS eight-digit level (certain organic chemicals), 
on which the tariffs were bound at zero.  Qatar 
has never taken any anti-dumping, countervailing or safeguard actions. Various incentives (e.g. duty and tax concessions) are granted (including on a selective basis) to, 
inter alia, attract investment, encourage 
economic diversification through processing of locally produced goods, and promote exports. 
10. Qatar is yet to implement the WTO 
Agreement on Customs Valuation. Documentation for all imported products must 
be authenticated by the Qatari Embassy in the 
country of origin. Permits may be issued to allow importation of prohibited goods. Import controls are applied on sanitary, phytosanitary, and Islamic grounds, by means 
of certificates. Parallel imports of certain 
products are subject to a 5% commission (on the f.o.b. value) on behalf of local agents with distributor rights. Qatar does not have export finance, insurance, guarantees, or promotion programmes.  Its public procurement regime 
provides for 10% and 5% price preferences 
for local and GCC products, respectively. Qatar faces some difficulties in enforcing its TRIPS legislation. 
11. Key industries (e.g. energy, transport, 
and telecommunications) remain dominated by 
public companies.  Some of these are sheltered from competition and/or represent a drain on public revenue. Products/services under the areas of activity of public enterprises are 
generally subject to price controls.  
Recognizing the need to increase efficiency, reduce the pressure on public resources, and increase the participation of the private sector in the economy, a privatization programme is in progress in some areas, including gas 
transport, steel, and fertilizer industries, as 
well as in certain services subsectors. 
(4) S
ECTORAL POLICIES  
12 Despite its very small and decreasing 
share of GDP (0.3% in 2003), agriculture is Qatar WT/TPR/S/144 
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an important sector in the economy because of 
Qatar's food security objective.  Qatar is a net importer of agricultural products, and food security is mainly promoted through relatively 
low customs tariffs.  The Government assists 
farmers by offering them basic infrastructure (e.g. drainage and irrigation facilities), and free inputs, such as pesticides, natural fertilizers, veterinary services, and vegetable 
seeds. 
13. Qatar Petroleum (QP), a state-owned 
company, holds the monopoly for oil and natural gas activities in Qatar, albeit increasingly in cooperation with foreign enterprises through joint-ventures. QP is 
pursuing an intensive exploration drive to 
increase the lifetime of its reserves, and broaden its production c apacity.  Qatar has 
the world's second largest  proven reserves of 
natural gas (14.3% of the globe's total), and it 
aims to become the largest liquefied natural 
gas (LNG) producer in the world by 2010.  It is also building the largest gas-to-liquids (GTL) plant. Qatar is expanding its electricity network and modifying the distribution management system in order to meet its 
growing demand. 
14. Qatar's manufacturing sector (6.7% of 
GDP) is based mainly on its comparative advantages in gas-intensive industries. The Government holds a majority stake or is an 
important shareholder in major manufacturing 
companies (e.g. steel, cement, and fertilizers). The sector is being promoted partly through investment incentives, including exemption from import duties, and tax holidays for 5-10 
years.  Alcoholic beverages, and tobacco and 
tobacco products are subject to the highest tariff rate of 100%. 
15. The services sector is dominated by 
several state-owned companies, some of which are a monopoly, or hold exclusive rights (e.g. 
telecommunications, postal services, and air 
transport). Under the General Agreement on Trade in Services, Qatar made commitments in some services categories; it does not maintain MFN exemptions under Article II of the GATS. 
Despite the presence of a significant foreign working population, Qatar made no 
commitments on the movement of natural persons under the GATS, except for entry and temporary stay of managers, specialists, and 
skilled technicians.  Presence of foreign 
natural persons as self-employers is not allowed. 
(5) T
RADE POLICY AND TRADING 
 P ARTNERS  
16. Qatar is a strong supporter of the 
multilateral trading system, having hosted the fourth Ministerial Conference where the Doha Development Agenda (DDA) was launched.  Moreover, with few exceptions, Qatar's market for all products is quite open, and the bulk of 
its trade has been liberalized on an MFN 
basis. However, Qatar needs to bring some elements of its trade regime more up to date and into greater conformity with WTO provisions. Continued reforms, including on 
tariffs and privatiz ation, and further 
improvement of Qatar's multilateral commitments, both on goods and services, would contribute to better resource allocation, and increase the predictability of its trade regime. 
17. Increasingly, a key element in Qatar's 
reform process relates to full economic integration under the GCC, including the planned establishment of the monetary union by 2007. Qatar's membership in the GCC has 
contributed to GDP growth by improving 
competition in the economy, but has also detracted it from multilateral efforts, given the increased demand on its limited administrative and negotiating resources. Qatar's future 
trade agreements, both at the GCC level and 
bilaterally, could further complicate this situation.  It is therefore important to consider the potentially greater advantages of further market opening on a multilateral basis. Trading partners could help by ensuring that 
their markets are fully open to goods produced 
in Qatar, and by providing more technical assistance. 
  
.